Centene — Jul 28, 2026 release

NUMBER OF EMPLOYEES 59,800 61,000 61,100 60,900 60,300 DAYS IN CLAIMS PAYABLE 47 48 46 48 47 CASH, INVESTMENTS AND RESTRICTED DEPOSITS (in millions) Regulated $ 43,015 $ 40,239 $ 37,289 $ 37,574 $ 36,403 Unregulated 1,831 1,533 1,478 1,259 1,086 Total $ 44,846 $ 41,772 $ 38,767 $ 38,833 $ 37,489 DEBT TO CAPITALIZATION 41.6  % 43.2  % 46.5  % 45.5  % 39.0  % OPERATING RATIOS Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 HBR 89.6  % 93.0  % 88.4  % 90.2  % SG&A expense ratio 7.0  % 7.1  % 7.3  % 7.5  % Adjusted SG&A expense ratio 6.9  % 7.1  % 7.2  % 7.5  % HBR BY PRODUCT Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Medicaid 93.9  % 94.9  % 93.5  % 94.2  % Commercial 79.2  % 90.6  % 77.2  % 82.8  % Medicare (5) 89.5  % 90.9  % 87.3  % 88.6  % (5) Medicare includes Medicare Advantage, Medicare PDP and Medicare Supplement. 12 MEDICAL CLAIMS LIABILITY The changes in medical claims liability are summarized as follows (in millions): Balance, June 30, 2025 $ 20,117  Less: Reinsurance recoverables 60  Balance, June 30, 2025, net 20,057  Incurred related to: Current period 161,849  Prior periods (1,737) Total incurred 160,112  Paid related to: Current period 142,602  Prior periods 16,854  Total paid 159,456  Plus: Premium deficiency reserve (389) Plus: Divestitures (109) Balance, June 30, 2026, net 20,215  Plus: Reinsurance recoverables 47  Balance, June 30, 2026 $ 20,262  Centene's claims reserving process utilizes a consistent actuarial methodology to estimate Centene's ultimate liability. Any reduction in the "Incurred related to: Prior periods" amount may be offset as Centene actuarially determines the "Incurred related to: Current period." Additionally, approximately $22 million was re